The SFTI initiative; End-to-end e-procurement in Sweden; key actions and concrete support Håkan Sörman General Director, Swedish Association of Local Authorities.

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Presentation on theme: "The SFTI initiative; End-to-end e-procurement in Sweden; key actions and concrete support Håkan Sörman General Director, Swedish Association of Local Authorities."— Presentation transcript:

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The SFTI initiative; End-to-end e-procurement in Sweden; key actions and concrete support Håkan Sörman General Director, Swedish Association of Local Authorities and Regions (SALAR)

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Public procurement and wellfunctioning order-invoice process? The result of an often costly tendering process is contracts, often framework agreements The question is: how to visualise the contracts to ensure that employees, in an often decentralised organisation, order - the correct goods and services, - to correct prices and - from the suppliers who won the contract! A win-win situation for public sector and the suppliers

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So, our objectives for e-procurement is.. –Better compliance with framework agreements –Increased awareness of prices when easy available –More efficient procurement; i.e matching invoice with the order –Better internal control –Available statistics to use for future procurements The goal: more resources for the core public activities (i.e. schools, hospitals, elderly care etc.)

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E-procurement; the political vision? -2/3 of the goods and services purchased by selfdependant municipalities and regions, 1/3 by governmental sector - How promote e-procurement without legislation but strong support? - The political vision and strategy was clear: Some key actions necessary to address: - good infrastructure/broadband necessary, - technic and standards to be developed, - legal conditions in place and - education and support for buyers and enterprises - A joint initiative was needed ; the SFTI concept

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SFTI (Single Face To Industry) in Sweden SFTI is a joint initiative to promote e- procurement Lead by Swedish Association of Local Authorities and Regions ( SALAR ) and the government agencies ( The Swedish National Financial Management Authority/ESV and The Legal, Financial and Administrative Services Agency/Kammarkollegiet). Cooperation public sector, enterprises and IT providers. All represented in the workinggroups and when recommending standards & guidelines.

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End to end e-procurement process; contract, the bridge between tendering and ordering/invoice process Notification Tendering Process Contract / e-Catalogue Ordering Process Invoicing Process We started with standards & promotion for e-ordering-e-invoice process We also support e-tendering process, but platforms instead of exchange of e-messages has lead to less standardisation activities Payment was already efficient, no need for standardisation etc.

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Mandatory e-ordering and e-invoicing in governmental sector The SFTI initiative started with strong support, but on volountary basis 2008 came regulation: all Swedish government agencies must send and receive electronic invoices no later than July 1, 2008 Can save 400 Million in 5 years ( ref.to pre study ) From 2013 also mandatory to handle e-ordering. Part of Swedish Action Plan for E-government – i2010 But still mandatory for municipalities and regions/county councils

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But standardisation activities and good infrastructure is not enough! E-procurement needs political commitment Resources necessary - for procurement of IT- solution but also - education, support and preparing the organisation for the new way of working.

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E-procurement in figures Even if volountary for local and regional level, many have started: > 61 % of municipalities have e- invoicing, by which half of them also e-ordering -7 % have decided to start e- procurement/e-invoicing -11 % consider starting up within next few years. -95 % of the regions/county councils have e-invoicing ( 88 % of them also have e-ordering) > 50 % of contracting authorities have e-tendering. Appr 35% of procured goods and services with e- tendering.

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Benefits and effects? The benefits are clear ( according to a survey 2013 ): better compliance to framework agreements and thus better prices ( economic savings between 1-10 % of total budget, more economic and human resources for core public sector activities; like schools, hosptitals, elderly care etc) efficient procurement process, good statistics which give economic steering and internal control and form the base of coming tendering processes.

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Challenges and lessons learnt? High level management commitment is very important Core activity must take the lead; e-procurement is not an ICT issue Difficult to change management Training is very important Important involving enterprises and ICT sector early E-procurement is not a quick fix, but gives benefits in money, time and quality Benefits also for the suppliers

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The way forward? The cooperation continues, on national, regional and local level Still need for further standardisation Support through training,education and web-based verification tool, Continued participation in international standardisation foras ( SFTI standards based on UN/CEFACT, CEN and OASIS/UBL standards ) Further information activities for both contracting authorities and enterprises, especially SME:s